Japan’s economy grew at an annualized rate of 1.1% in the April-June quarter, missing estimates of 2%. The GDP rose 0.3 percent during the second quarter.
The unexpected slowdown occurred as private consumption stayed flat and the growth of exports declined. Both consumption and capital spending sagged during this period.
The economy is facing fallout from the conflict in the Middle East, which has pushed up fuel prices. Uncertainties stemming from the conflict further contributed to the slump in capital spending.